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Thriving Minibus Hire Business With High Profit Margin For Sale

Manchester,
Greater Manchester

Asking Price:

£395,000

Turnover:

£444,000

Net Profit:

£130,000

This sale represents a unique opportunity to acquire a very well established contract and private hire minibus business operating in South Manchester. The current owner has put great pride into developing a well established, highly regarded and very profitable business over the last 10 years and is now looking to retire. The business is being sold with all assets, including vehicles, offering a new buyer a turnkey opportunity coupled with tangible assets from day one. The company is situated in the south/central area of Manchester, within easy access of the M60 motorway.

To year ended Nov 16, the company had a turnover of £444,000, with a net profit after director’s remuneration (circa £50K), of £130,000. The high profit margin reflects the quality of the local council contracts held and the efficiency of the business operation.

The business is run from office premises with annual rent of £18K of which £13K is offset with money received for sub-letting parts of the premises. Annual rates are £1200. The premises are rented on an informal verbal agreement basis. This has lasted for 9 years. It is our understanding that the landlord would be willing to formalize the rental agreement with a lease.

The company is a council approved contractor, specializing in the transportation of children and vulnerable adults within the south/central Manchester areas. The company is in the enviable position of holding many long term solid contracts with local councils, some of which have in excess of 2 years to run, ensuring ongoing business and profitability to a new owner. The lucrative council contracts have been renewed with this business over a 10 year period. The company also services the private sector, including daily private jobs for the general public, private company trips and occasional sub contract work for other coach companies in the area. Approx 95% of the income is from council contract work, which leaves the new owners huge scope to expand further into the private sector. Council payments are extremely prompt, which gives the company a very healthy cash flow.

Included in the sale is a fleet of 13 minibuses (up to 16 seats), 12 of which have under slung wheelchair lifts. These are specialized vehicles, less common than standard 16 seater minibuses, ensuring a higher demand from local councils. Vehicles engaged on private work are fitted with the necessary fully calibrated tachographs. The company benefits from an 'any driver/fully comp' fleet insurance policy with maximum no-claims discount, representing an approx 75% saving on a comparative start up policy. A full break down of the vehicles can be provided to interested parties.

An experienced, reliable, professional team of PSV drivers are retained on a full and part time employed basis, a large majority of who have been with the company 5+ years. All of the drivers have been Enhanced CRB checked and have up to date CPC qualification.

The company rarely carry out any advertising for the business, since the council work provides more than enough remuneration for the current owner. A fully liveried fleet and a pro-active advertising campaign would provide great scope for any prospective purchaser wishing to build upon the success of an already outstanding business.

The business would suit a variety of potential buyers including, existing operators in this field, to whom the company would provide an ideal 'bolt-on' opportunity, an operating taxi business that is looking to expand into this sector or a husband and wife team to take over the roles of the current director and manage the day to day running of the business. The current owners are more than willing to provide a necessary hand over period to ensure continuity of the service. Further information available upon request, please contact seller below for further details.

The company is situated in the south/central area of Manchester, within easy access of the M60 motorway.

Premises Details:

The business is run from office premises with annual rent of £18K of which £13K is offset with money received for sub-letting parts of the premises. Annual rates are £1200. The premises are rented on an informal verbal agreement basis. This has lasted for 9 years. It is our understanding that the landlord would be willing to formalise the rental agreement with a lease.

The company rarely carry out any advertising for the business, since the council work provides more than enough remuneration for the current owner. A fully liveried fleet and a pro-active advertising campaign would provide great scope for any prospective purchaser wishing to build upon the success of an already outstanding business.

Reasons for selling:

The current owner has put great pride into developing a well established, highly regarded and very profitable business over the last 10 years and is now looking to retire.

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